Self-Employed Vehicles

If someone is self-employed and buys a second hand Van for £4,000 do they still have to use Depreciation Method to write off cost? I think they do but just wanted to double check incase this is only for vehicles for big amounts.



  • stevo5678
    stevo5678 Registered Posts: 325
    Hi Jewels,

    Yes they do as it makes no difference whether it is new or not. It is the cost your client pays that is relevant and then select a suitable dep'n policy. I would say something like 20-25% reducing balance as it's fairly close to the MV that way.

    100% CA's available via AIA for tax, so you get the full tax relief in year one.

  • jewels.p
    jewels.p Registered Posts: 1,774
    Thanks Stevo5678. With the second part you are meaning for all other Tools/Equipment arent you and not referring to the Van?:001_smile:
  • peaman
    peaman Registered Posts: 123 ? ? ?
    A van is classed as plant & equipment, so the 100% AIA can be claimed.

    If they are just a sole trader and no balance sheet is being prepared (i.e. just an income & expenditure a/c), I wouldn't bother claiming the depreciation in the accounts.
  • jewels.p
    jewels.p Registered Posts: 1,774
    Thanks peaman:001_smile:
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